Agenda - Council - 06/12/2018 - Laserfiche WebLink

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NOTE 8 — DEFINED BENEFIT PENSION PLANS — STATE-WIDE (CONTINUED) At December 31, 2017, the City reported its proportionate share of the GERF's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual economic experience $ 115,928 $208,633 Changes in actuarial assumptions 538,414 352,634 Difference between projected and actual investment earnings - 25,664 Changes in proportion 261,854 14,092 Contributions paid to PERA subsequent to the measurement date 130,556 - Total $1.046.752 $601.023 $130,556 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction ofthe net pension liability in the year ended December 31, 2018. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year ended December 31: Pension Expense Amount 2018 $ 199,044 2019 257,381 2020 8,061 2021 (149,313) 2. PEPFF Pension Costs At December 31, 2017, the City reported a liability of $2,956,761 for its proportionate share of the PEPFF's net pension liability. The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2016, through June 30, 2017, relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2017, the City of Ramsey's proportion was 0.219% which was an increase of 0.011 % from its proportion measured as of June 30, 2016. For the year ended December 31, 2017, the City recognized pension expense of $756,861 for its proportionate share of the PEPFF's pension expense. The City also recognized $19,710 for the year ended December 31, 2017, as revenue for its proportionate share of the State of Minnesota's on -behalf contributions to the PEPFF. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the PEPFF each year, starting in fiscal year 2014. 84